Privatization of information and technology is good, it’s key to limit biopolitical sovereigns, draw attention to their juridicary techniques and solves for the economy

The Founding Fathers understood that it was not uncommon for political leaders to turn on their own people. Hitler, Stalin and Mao showed there is no limit as to how far some leaders will go. Even in rather civil, democratic regimes, it is common to see leaders far more concerned with their own power than the common good. This is why the Founders tried to design a system that would limit government — particularly the federal government, which was given very few tasks and powers. As is widely and correctly understood, when government directly manages an activity, it often does it poorly because of the lack of competition and accountability, and because governmental activities often become politicized — delivering inferior service at high cost.

The solution to this problem is to keep as many activities in the private sector as possible. Prime Minister Margaret Thatcher began a massive privatization of the British economy more than three decades ago, which enabled economic renewal. Many other countries followed suit; however, the global effort has waned in recent years. Now, when stagnation has re-emerged, part of the solution is again privatization.

My Cato Institute colleague Chris Edwards, in an article published in the Daily Caller last week, noted: “Canada provides an excellent model for U.S. reforms. Canada’s Air Traffic Control system is run by the nonprofit corporation Nav Canada, which is separate from the government. It raises money from its customers to cover operational costs and capital investments. Unlike the U.S. system, Nav Canada is self-supporting and not subsidized.” It also has a reputation for being very well run, with state-of-the-art systems (unlike the FAA). Approximately 50 countries have now, in part or fully, privatized their air-traffic control systems — with excellent results.

The debate over sequestration has caused a renewed focus on all of the waste, duplication and inappropriate or nonessential things the federal government does. As noted above, at some point, the ability of the government to borrow at low cost will run out. At that time, the government will have no choice but to make many activities self-supporting and privatize them. Smart politicians will begin proposing such solutions now — rather than pushing for more destructive tax increases.